Textbook Problem

Can Management Afford to Look the

Other Way?"

Harry Rull had been with Shellington Pharmaceuticals

for 30 years. After a tour of duty in the various plants and

seven years Overseas, Harry was back at headquarters,

looking forward to his new role as vice president Of U. S.

marketing.

Two weeks into his new job, Harry received some

unsettling news about one of the managers Char he

supervised, During a casual lunch conversation, Sally

Barton, the director of human resources, mentioned that

Harry should expect a phone call about Roger Jacobs,

manager of new product development. Jacobs had a

history of being "pretty horrible" to his subordinates, she

said, and one disgruntled employee asked to speak to

someone in senior management. After lunch, Harry

did some follow-up work. Jacobs's performance reviews

were stellar, but his personnel file also contained a

large number of notes documenting charges of Jacob"

mistreatment of subordinates. The complaints ranged

from "inappropriate and derogatory remarks" to charges

of sexual harassment (which were subsequently dropped).

What was more disturbing was the fact that the number

and the severity of the complaints had increased with each

of Jacobs's ten years with Shellington.

When Harry questioned the company president about

the issue, he was told, "Yeah, he's had some problems,

but you can't Just replace someone with an eye for new

products. You're a bottom-line guy; you understand why we

let these things slide." Not Sure how to handle the situation,

Harry met briefly with Jacobs and reminded him to "keep

the team's morale up." Just after the meeting, Barton called

to let him know that the problem that shed mentioned

Over lunch had been worked Out. However, she warned,

another employee had come forward and demanded that

her complaints be addressed by senior management.

  l. Ignore the problem. Jacobs's contributions to new

product development are too valuable to risk losing

him, and the problems Over the past ten years have

always worked themselves Out anyway. no sense

starting something that could make you look bad.